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Netflix Inc (NAS:NFLX)
EV/EBIT
91.38 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Netflix Inc's enterprise value is $36,781 Mil. Netflix Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2015 was $403 Mil. Therefore, Netflix Inc's EV/EBIT ratio for today is 91.38.

NFLX' s 10-Year EV/EBIT Range
Min: 8.4   Max: 3077.6
Current: 92.27

8.4
3077.6

During the past 13 years, the highest EV/EBIT Ratio of Netflix Inc was 3077.60. The lowest was 8.40. And the median was 30.30.

NFLX's EV/EBITis ranked lower than
92% of the 329 Companies
in the Global Pay TV industry.

( Industry Median: 15.38 vs. NFLX: 92.27 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Netflix Inc's enterprise value for the quarter that ended in Mar. 2015 was $24,652 Mil. Netflix Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was $403 Mil. Netflix Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 1.63%.


Definition

Netflix Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=36781.492/402.509
=91.38

Netflix Inc's current Enterprise Value is $36,781 Mil.
Netflix Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 129.6 (Jun. 2014 ) + 110.407 (Sep. 2014 ) + 65.046 (Dec. 2014 ) + 97.456 (Mar. 2015 ) = $403 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Netflix Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2015 )
=402.509/24652.037
=1.63 %

Netflix Inc's Enterprise Value for the quarter that ended in Mar. 2015 was $24,652 Mil.
Netflix Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 129.6 (Jun. 2014 ) + 110.407 (Sep. 2014 ) + 65.046 (Dec. 2014 ) + 97.456 (Mar. 2015 ) = $403 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Netflix Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 421.2121.4015.3812.3014.9032.289.1591.9993.0449.36

Netflix Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 91.99122.9995.08106.7593.0469.1370.0062.9149.3661.25
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